TRW to Buy LucasVarity
For $7 Billion Amid Tussle

DETROIT -- TRW Inc. said it agreed to acquire British auto-parts maker LucasVarity PLC for $7 billion, but rival bidder Federal-Mogul Corp. signaled it may try to top that bid.

LucasVarity said its board had approved the offer from TRW, the Cleveland aerospace, information systems and automotive-components company. But Federal-Mogul, which was rebuffed by LucasVarity in a recent informal offer to buy the company for $6.44 billion in...